Thursday, 7 August 2014

SOCO Vietnam update

Vietnam, Block 16-1 - Te Giac Trang field

The TGT partners continue to focus on achieving approval for the H5 Field Development Plan (“FDP”) and meeting the first oil target in September/October 2015.

The Hydrocarbons Initially In Place/Reserve Assessment Report (“RAR”) was approved on 18th June 2014, and the work is ongoing on the FDP which is expected to be submitted for approval by the relevant Vietnamese authorities by the end of the third quarter.

All related development works required to meet the first oil schedule remain on target.

Drilling by the ENSCO 109 rig of the 2014 in-fill development programme at the TGT field continues. The first two wells, TGT-17PST1 and TGT-18PST1, have been completed and are producing in line with expectations.

The rig is currently drilling the TGT-11X well.

Following the earlier issues with the Hercules rig, the partners are currently targeting drilling a total of 4-6 development wells during 2014, with any approved wells not completed likely to be added to the 2015 programme.

Vietnam, Block 9-2 – Ca Ngu Vang field

Completion of the CNV-7PST1 well by the Naga 2 rig is expected in September. The well has encountered unexpected geological problems in the upper hole section just above the reservoir. Borehole instability issues, caused by a below seismic resolution fault in the Oligocene section, just above the Basement, requires the section to be re-drilled and for an alternative casing programme to be employed to ensure the well can be drilled safely into the Basement.

Redrilling of the section is not expected to impact the commencement of development drilling on TGT’s H5 well head platform which remains on target following platform installation.

Once onstream, the CNV-7PST1 well is expected to enable production levels of the CNV field to be increased.